Home Salon Insurance for Beauty Professionals

There are around one million home-based businesses in Australia, including beauty professionals. With the flexible hours, lower overheads, and the bonus of not having to travel, it’s easy to see why creating a beauty salon at home is appealing. There are however things you need to consider before you take the leap to opening your doors to clients at home.

Setting Up Your Home Salon

Home Salon Insurance body | Sparrow Insurance

Check your mortgage or tenancy agreement

The first thing you should do is seek approval from your lender or landlord if you are renting, before commencing your home beauty business. In some situations, home mortgages and rental agreements prohibit a business from being conducted on the premises, so this should be the first call you make. 


Call your local council

Councils generally support home businesses and recognise the economic potential, however you must gain council approval before operating your home beauty salon business.  

Your council will also be able to provide information for things like if you need to provide off-street parking for your clients, or if you want to erect signage.

Every council has different regulations to provide approval, so make sure that it’s your local one that you contact.

Find the right business licences

Using your home as a place of business means you need to comply with particular health and safety regulations set by the various state and territory governments. Most governments will require you to register with your local council, especially if you intend to undertake skin penetration procedures, like cosmetic tattooing for example. There are also additional requirements to be adhered to when providing beauty services such as surfaces, ventilation, hygiene, and hand washing facilities. If you do not have council approval or the required licences, you run the risk of your business being closed down if the regularity authority were to find out. Also, if you have an unfortunate situation where a client makes a claim against you, your insurer may refuse to pay. Visit ABLIS (Australian Business Licence and Information Service) to check local, state and Australian government licensing, permits, registrations, and approval requirements for your home-based business.

Speak to your insurance broker 

Advise your insurance broker of your home beauty business activities. They will let you know of any requirements, costs, and restrictions from an insurance perspective.

A home-based business is exposed to many risks and hazards and it’s important to understand that home and contents insurance policies generally exclude any business operations at home and will not cover your beauty business. You will need to purchase separate insurance policies to protect you and your business.

Types of insurances that you may need for your home beauty business include:

Doesn’t my Household Insurance cover my Home Beauty Business?

The short answer is, no, it does not.

Say a client is visiting your home salon and they trip on a toy you’ve accidentally left on the floor and they suffer an injury. You could possibly be looking at a compensation claim as well as legal costs and quite possibly a debilitating impact on you and your business.

Although your home insurance might already have Public Liability included, this will not usually cover potential claims arising from your home-based business. It can take only one catastrophic event like this to have a devastating impact that could leave you without a business and in serious debt.

Even if you already have policies in place, it’s good practice to do a health check on your insurance to make sure you’re still adequately protected should the unthinkable happen.

It’s also a good idea to compare other policies in the market. Whilst it may seem easier to go with the same provider you use for your personal insurances, they may not be able to offer the specific business cover you need for the treatments and professional services you are offering in your beauty business.

To find out what insurance cover you need for your business, or to do a health check on your current policies, get in touch with Sparrow Insurance for expert advice or to request a quote. Call today on (07) 5502 8326 or visit https://www.sparrowinsurance.com.au/.

Get in Touch

To find out what insurance cover you need for your business, get in touch with Sparrow Insurance for expert advice or to request a quote. Call today on (07) 5502 8326 or visit www.sparrowinsurance.com.au or get an instant quote online here.